A direct stereoselective conversion of tertiary hydroxyalkylphosphine oxides to the corresponding tertiary hydroxyalkylphosphine-boranes involving facile reduction of the P═O bond by BH3 under mild conditions has been developed. The unprecedented facility of reduction of the strong P═O bond by BH3, a mild reducing agent, has been achieved through an intramolecular P═O···B complexation directed by proximal α- or β-hydroxy groups present in the phosphine oxide structures. As established by two chemical correlations, the developed transformation of hydroxyalkylphosphine oxides into hydroxyalkylphosphine-boranes takes place with complete inversion of configuration at P.